Rivian Automotive (NASDAQ:RIVN) shares gained about 5% Tuesday morning after TD Cowen upgraded the electric vehicle maker to Buy from Hold and set a $20 price target. The stock had closed Monday’s session at $15.87.
The upgrade followed a detailed demand assessment of Rivian’s upcoming R2 model conducted by TD Cowen analyst Itay Michaeli. Michaeli raised his price target after revising his 2027 EBITDA loss forecast lower and applying a higher terminal multiple of 17x, compared with his previous estimate of 14.5x.
“Our newly introduced Rivian R2 model suggests full scale US demand in the 212k-335k range, supporting an above-consensus ’27 outcome,” Michaeli commented.
The analyst’s demand outlook for the R2 indicates potential upside to current 2027 consensus expectations. TD Cowen believes the stock presents an attractive risk-reward profile heading into the model’s launch, particularly with Rivian shares down roughly 20% so far this year.
In a broader research note, Michaeli also suggested sentiment toward electric vehicles in the U.S. could be nearing a cyclical low, with a potential next wave of demand growth emerging between 2027 and 2028.
He pointed to upcoming next-generation EV launches and the potential introduction of personal autonomous vehicles as factors that could begin reshaping the market within the next 18 months.